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About this month’s Cash Shiller:

The Home Price Index showed prices continued to increase. The National Index grew 7.1% in Q2, and 10.1% over the past year. The 10-City and 20-City Composites posted returns of 2.2% for June and 11.9% and 12.1% over 12 months. All 20 cities posted gains on a monthly and annual basis

Note the mortgages that fund these homes were likely locked in at rates that considerably lower than today. They pre-dated the large interest rate spike of the summer. Its reasonable to assume these rate hikes will impact sales and prices going forward.

 

 

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Source: S&P Case Shiller Index

Category: Credit, Real Estate

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

11 Responses to “Case-Shiller : Home Prices Climbed in June 2013”

  1. Mike in Nola says:

    If memory serves, the CS Index is a 3-month rolling avg. so its influenced by April and May. It has the advantage of smoothing out noise. OTOH, it responds much lower to changes. I expect that the loans for these months would have been locked in for some period before so the effect of the rate rise is uncertain but probably muted. You also have the “buy before rates go up” panic for those who weren’t locked in. Suspect it will take a little while yet to see whether rate rises had effects,

  2. BennyProfane says:

    Let’s see the figures in, maybe, November when the results from this rate hike take full effect. Wells Fargo laying off 2300 is not a good sign for the industry, and, I’ve heard from a friend in the mortgage biz that volume is gone. If one believes that interest rates will never go down again for many a year, than we may have seen the death of the refi business in our lifetimes. The first time buyer now has to step up, but, they’re still stuck in Mom and Dad’s basement with a game controller and cell in hand.

  3. Livermore Shimervore says:

    Question, does anyone track/index the cost of owning (taxes, insurance, maintenace, etc.) in the 10 and 20 cities composite cities to analyze how the total cost basis rises or falls with the ups and downs in the property values? As a spectator it seems to me that discussing home prices while leaving out a major piece of the cost basis puzzle is both problematic and unlike discussions of virtually all other markets.

  4. Rob Dawg says:

    > “About this month’s Cash Shiller:”

    Thanks for the laugh.

  5. VennData says:

    This simply cannot be

    – Jack Welch

  6. BuildingCom says:

    This CS is meaningless considering sales continue to sink.

    • Mike in Nola says:

      It’s not meaningless. It just measures something different than what the headline-writers think. Over a long span it’s meaningful. Think of Shiller: boring and methodical, but ultimately to be listened to.

      “They” created a little bubble and it won’t deflate overnight.

      • Angryman1 says:

        Calling that a “bubble” is pushing it. Looks like adjustment back to the long run trend. I suspect the price rises are about done in mass.

        Interest rates are overrated.

      • BuildingCom says:

        It’s meaningless in the same way as putting a $5,000 sticker price on your 5 year old refrigerator. No buyers, no price discovery, no transactions.

  7. Clem Stone says:

    My personal sliver of a view from Minneapolis is that our houses for sale went from multiple offers over asking price 3 months ago to where now we can’t even get anyone to walk through the front door for a look. It’s DEAD. The realtors are trying to convince themselves that “it’s always slow this time of year” like they’re expecting more buyers when it’s a balmy 20 below zero in a few months.